UK Business Environment: Stakeholder Objectives, Policies & Primark

This report provides a comprehensive analysis of the business environment, focusing on Primark and its interactions with various stakeholders. It examines the purposes of different organizational types, the extent to which Primark meets stakeholder objectives, and the company's responsibilities and strategies. The report also delves into the economic systems of different nations, assessing the impact of fiscal and monetary policies on farming and housing in the UK. Furthermore, it explores competition policies, market structures, and the influence of cultural environments on organizations. Finally, the report discusses the significance of international trade for UK businesses, the impact of global factors, and the effects of European Union policies on UK business organizations. Desklib offers similar solved assignments and past papers for students.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Purpose of different types of organisation.............................................................................1
1.2 Extent to which Primark meets the objectives of its different stakeholder...........................2
1.3 Responsibilities of Primark and strategies to meet with objectives......................................4
TASK 2............................................................................................................................................5
2.1 Economic system of different nation.....................................................................................5
2.2 Assess impact of fiscal and monetary policy on farming and housing..................................7
2.3 Competition policy which impact on regulatory mechanisms in the UK..............................7
TASK 3............................................................................................................................................8
3.1 Pricing and output decisions of business of different market structure.................................8
3.2 Market forces which shape to the organisation responses...................................................10
3.3 How cultural environment can shape to the organisation....................................................12
TASK 4..........................................................................................................................................13
4.1 Discuss significance of international trade in UK business.................................................13
4.2 Impact of global factor in UK..............................................................................................14
4.3 Evaluates policies of European Union on UK business organisation.................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................18

INTRODUCTION
Business environment if every business is affected by different factors whether they are
internal and external. In order to assess impact, organisation analysis market for develops their
functions within the business (Arseculeratne and Yazdanifard, 2014). For this assignment
Primark is taken which operate functions in various part of the nation through effective delivery
system. They are possess private ownership within the market for develop effective results. In
this context, they are also operating different types of products such as clothing, accessories,
footwear and any more things. For gaining insight knowledge of company present report analysis
purposes of different firm. Furthermore, it also assess impact on fiscal policy and monetary
policy on UK functions.
TASK 1
1.1 Purpose of different types of organisation
Every organisation operates their business for accomplishing their purpose and maintain
business environment. In respect to this, they are operating various functions for developing
positive results and overcoming weaknesses at the workplace (Cavusgil and Knight, 2015). To
maintain sustainability, Primark also operate functions to achieve business targets and attaining
competitive advantages. Thus, it is beneficial to deliver effective results and creating better
environment to generate loyalty of customer and employee as well. There are several types of
organisation which has different purposes. They are as follows:
Vision of Primark
Primark has clear vision which enables to enhance their market share easily. They want
to increase their relations with the suppliers so that the company can get raw-material on time. In
this aspect, the cited firm provides better facilities to their customers (Holden, 2016). In addition
to this, they are also giving better environment to employee for enhancing their skills and
knowledge to accomplishing business targets.
Mission of Primark
Further, the mission of Primark is to direct employees by providing them with proper
training. This is because, if the company provides good platform to their employee, then they can
easily achieve high market share price (Storey, 2016). This company is private limited which is
not offering their shares in public. Shareholders have limited liability to operate functions.
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 Public sector: Tesco is public limited company that deals in clothing retailer products.
They are offering diverse range of products and services such as children clothing,
women clothing and many more things (Mäkelä, Kinnunen and Suutari, 2015). In
addition to this, they also provide accessories, footwear, beauty products and
confectionery. Hence, they can easily capture whole market by making themselves as the
market leader. Their main aim is enhancing market share of company and attracting
potential customer towards the business. They enjoy legal status of incorporation which
make success for the company (Beynon-Davies, 2013).
 Charity: Charitable organisations are non profits businesses which develops their
functions to dealing in different areas. Their purpose is to manage business functions for
public welfare (Helm and Gritsch, 2014). These types of firms are deals in contributing
products and services to develop social being activities in term of education, religious and
other activities which serve in public interest. In UK, Joseph Rowntree charitable trust is
working for public welfare.
 Cooperative: Cooperative business are owned and run by their members including
customer, employees and residents. The company is offering equal share of profits to all
member for operating their functions within the market (Yadav, Singh and Kumari,
2015). Purpose of the business is to increase sales, make high profits and partnership
among their members which can create job opportunities at the workplace. In the UK
Leaf cooperative work which develops purposes to accomplish their goals.
1.2 Extent to which Primark meets the objectives of its different stakeholder
In the business, there are different types of stakeholder are give their efforts and
participation to accomplish objectives (Gumerov, Pavlova and Khairullina, 2014). They have
also own objectives from the organisation operations which need to be accomplished by
enterprise. Primark operate their effective functions in which they can also meet with different
stakeholder objectives easily. Following are different stakeholder of the cited firm and their
objectives which need to be accomplished by the enterprise:
 Shareholders: Shareholders of Primark has the objective to enhance, brand awareness
and expand the market through developing positive outcomes. In respect to this, the firm
have to expand their market and operations to meet shareholders objectives (Lanzafame,
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Centi and Perathoner, 2014). As a result, they can easily get effective results by operating
various functions.
 Employees: Employees of Primark want to get high incentives, satisfactory wages and
career progression. Thus, the cited business needs to give proper attention towards
employees to achieve positive results and effective activities at the workplace (No, An
and Park, 2015). In addition to this, they have to concentrate on extra ordinary
performance of employee and provide them incentives for that. Hence, they can easily
encourage workers to attain company purpose and their own objective as well.
 Customer: Customers are also important stakeholder of the company because they
consume products and services and pay for it. Their main objective is to get satisfactory
product, services at the low price. For fulfilling their objectives, Primark have to use
qualitative raw-material for producing products and further provide them discount. In this
aspect, they can easily meet with customer objectives and maintain loyalty at the
workplace (Kor and Mesko, 2013).
 Trade union: Trade union of Primark has the objective to meet with employee relation,
industrial relation and minimum salary level. In this aspect, the cited firm have to
maintain their relations with each other at the workplace whether they are senior or
subordinate. Hence, the organisation can easily fulfil objectives to meet with objectives
(Nattrass and Altomare, 2013).
 Supplier: Supplier need right payment on the right time. In addition to this, they also
want to create brand awareness of product and service in the customer mind. Thus,
Primark need to maintain cooperation with them by providing them with right payment
and enhance market share of particular product and services (Picoto, Bélanger and
Palma-dos-Reis, 2014).
 Government: Government also possess objective to increase taxes from business
operations to get high revenue at workplace. In addition to this, they also invest their
money in different country to get high interest on that. To accomplish this objective,
Primark is required to pay taxes on time so that they can maintain relations with the
government (Cavusgil and Knight, 2015).
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1.3 Responsibilities of Primark and strategies to meet with objectives
Primark possess various responsibilities towards their different types of stakeholder. The
cited firm has two types of stakeholder such as internal and external. Internal stakeholder are
owner, employees, customer and suppliers (Mäkelä, Kinnunen and Suutari, 2015). On the other
hand, external stakeholder are local community, public and NCO's. In respect to this, following
responsibilities can be taken by the firm:
Responsibilities for stakeholder
Main responsibilities for all stakeholder is that consider all stakeholder not forget to
anyone. Primark have to know about their stakeholder objectives and trying to fulfilling it
carefully. They have to consider their objectives and satisfying on time for maintain their
sustainability (Zhao, Tan and Park, 2014). In addition to this, employee of the company have to
take part in decision making process to develops positive results and outcomes.
Ethical responsibilities
In order to maintain positive aspects, Primark should avoid buying products at low price
and sell on high price. In this aspect, they have to maintain fair trade for all customer at
workplace. Further, for employee they have to protect from environment from unethical damages
such as whether, river and ocean, etc. They have to create awareness in front of customer
regarding products quality, ingredients and actual price for products (Wilden, Gudergan and
Lings, 2013).
For fulfilling these responsibilities, the cited firm can use different types of strategies for
their stakeholder. They are as follows:
Responsibilities for
stakeholder
Strategy to meet Description
Recognising all stakeholder Stakeholder analysis
techniques
It is the process in which
Primark can systematically
gather various information to
demonstrate interest towards
the business.
Fulfilling objectives Multi-strategies for multi
objectives
Different stakeholder possess
distinctive objectives so that
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this strategy would be taken
for each member separately
(Edvardsson, Kowalkowski
and Voima, 2014).
Involve in decision making Participative management
style
With the help of participative
management style, different
stakeholder possess qualities
for take decision at workplace
(Cavusgil and Knight, 2015).
Health and safety legislation Health and safety in any
activities
Health and safety should be
consider by the organisation to
design, production and usage
of products and services.
Responsibilities for on-
customers
Corporate social
responsibilities
In this aspect, Primark is also
responsible to creating well
being society to protect non-
customer by helps to them in
vulnerability (Mäkelä,
Kinnunen and Suutari, 2015).
TASK 2
2.1 Economic system of different nation
Economic system is organized way in which a country allocate their resources and
apportions goods and services in different areas of nation. In this aspect, country includes
combination of various institutions, agencies and entities.
Cuba economy system
Cuba has command economy system which deals in resources which are owned by state.
Decision are taken and made by the state which involves collection of statistical information
related with sources available. All objectives are carrying by state only. In this system goods and
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resources are allocates according to central direction of government agency. Resource are
contributed according to state decisions to manage country outcomes. It is helpful to make
decisions because it serves equitably according to the values of society. Thus, country can avoid
duplication and waste of resources which assist to achieve own social values and political
objectives. On the other hand, it also possesses disadvantage such as collection of data and
planning process to control of uses resources.
UK economy system
UK possess free and market economy system where buyer and sellers deals according to
their interest without any interference. All resources are owned by private individuals and
organisation. In addition to this, in UK there are goods and resources are allocates according to
decisions of individual producers and consumers (Wilden, Gudergan and Lings, 2013).
Government cannot interference in resource distribution. In this system producers have choice to
make favourable products and services at low price to make better position within the market. In
addition to this, producers have financial and survival incentives to make greater efficiency and
productivity to achieve maximum output from small input of resources. Apart from this, free
market system is also creates some disadvantages such as resources are not distributing equally.
Public goods are not excluded in this type of system so that government should provide this. In
addition to this, new technology creates unemployment and threaten within the political security
of the government.
China economy system
In this type of system, wealth is generates by the company in which government plays
major part to allocate resources. Thus, resources are obtained by government from business and
workers in the tax form. This system is run by both aspects such as individual and government.
Hence, it generates various advantages such as it allow to individual to run their business and
generates profits (Helm and Gritsch, 2014). It also places responsibilities with inducing
companies towards welfare of society. In addition to this, it also promotes efficiency in the
different sectors such as public and private. Thus, ownership is protected and encourage which
generates efficient resources and allocate it as customer demand.
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2.2 Assess impact of fiscal and monetary policy on farming and housing
Monetary policies include changing the interest rates and influencing, money supply of the
nation. On the other hand, fiscal policy considers changes in government taxes and level of
government spending which influence to the aggregate demand (Cavusgil and Knight, 2015).
Impact of fiscal and monetary policy on farming
In order to assess impact of fiscal policy on farming, farmers are enables to promote
private sectors business through providing them raw material. Hence, it creates positive impact
on farming sector organisation to enhance business profitability. This is because; it gives major
contribution in national income and GDP. On the other hand, monetary policy also affect to
development of the farming business. In this context, farmers can easily enhance production
system with the help of government (Mäkelä, Kinnunen and Suutari, 2015).
Impact of fiscal and monetary policy on housing
Fiscal policy assist to offer better housing for middle class people so that it encourage to
them for purchasing housing facility in UK market. It increases living of standard to measure
their performances. According to revenue policies, in UK market to manage effective operations.
It will also assist to manage functions at workplace. Further, monetary policy discourage to
expand business operations in new market.
2.3 Competition policy which impact on regulatory mechanisms in the UK
Competition is the market situation which bid for customers without any restriction and
happen for satisfies customer demand. It can be occur on price, quality, design and many more
things. It is very essential element which bring efficient worker within the market. It determines
various benefits for customer such as encouraging enterprise, innovation, efficiency and wide
choice to purchase products and services. Further, it enables to Primark to enhance their
customer in the best possible price.
With the help of competition policy, government can prevent and reduce abuse of
monopoly power. This is because, monopoly power lead to fail market in respect to public
interest. Thus, government is concern with intervene and protect interest of consumer. There are
different types of competition policies are take place in UK which impact on regulatory
mechanism in the market (Cavusgil and Knight, 2015). They are as follows: Impact of competition policy: In order to meet with trade liberalisation, competition
policy came to accomplish purpose within the market. It assists to identify update
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frameworks for business practices so that Primark can meet with their standards and
performances. This create impact on the chosen business to give dynamics products to
customer to meet with effective performances of clients. Through following these
guidelines, the cited company can meet with their high sales (Mäkelä, Kinnunen and
Suutari, 2015). Hence, this act is determines effective price competition among suppliers
to maintain standards performances. Impact of regional policy: European union also allocate funds to enhance employment
within the country. In this act, Primark can create job opportunities so that income level
of business can be increasing. Hence, the firm can get chance to develops variety of
fashionable products which enhance revenue and brand name in the market (Cavusgil and
Knight, 2015). Impact of industrial policy: According to this act, small business enterprise of UK
market is encourages which develops and contribute economic growth. Government
make changes in their rules and system suddenly so that Primark is unable to deal with
new aspects. Office of fair trading: Office of fair trading is responsible for investigation of abuses of
monopoly market with engaging in prohibited practices. In Primark, 2 types of behaviour
can be investigate such as collusive behaviour and abuse of market power (Helm and
Gritsch, 2014). Collusive behaviour occurs when the organisation enter in fix price
agreements and their outputs. This assist to the firm to make priorities and identify
expenses of consumers.
 Impact or fair trading act: In this act, UK business ensure fair deal with business and
trading. It creates impact on business when company is unable to enhance their sales.
With the help of this act, Primark can easily meet with their effective outcomes to deal
fair market structure.
TASK 3
3.1 Pricing and output decisions of business of different market structure
There are different types of market structure, which taken by different countries. It plays
significant role for operate functions. Country can take decisions on the basis of it. In order to
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develops business functions, pricing and output decisions can be taken within the business
(Cavusgil and Knight, 2015). Different economic decision can be made:
Market structure Attributes Pricing and output decisions
Perfect competition This competition is take place
in various markets. In UK
various customer and seller
are take place so that there is
perfect competition. Sellers
are offer different range of
products and services so that
they can easily get high
customer. For example,
Primark
Pricing and output decision
can be taken with assessing
market demand and supply.
Monopoly Another market structure can
be taken in that area where
single seller takes place.
Business and organisations is
leading with operating
effective functions. For
example British gas company
(Wilden, Gudergan and Lings,
2013).
In this aspect, business can
take decisions by individual
firm. Thus, they only take
responsibilities for operate
functions. It consist
dominating market structure.
Oligopoly Another market structure
taken by UK is oligopoly
which has only few
competitors in the area. For
example, Tesco
In this market structure pricing
and output decision can be
made by competitive market
structure which sell same
products and services (Helm
and Gritsch, 2014).
Duopoly In this market two firm are
operating functions within the
market to follow business
Two firm jointly take pricing
and output decisions for
manage business operations.
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